KUALA LUMPUR (May 20): MBSB Bhd (KL:MBSB), the country’s second largest standalone Islamic bank after Bank Islam Malaysia Bhd (KL:BIMB), announced on Tuesday that it has committed RM1 billion in financing facilities to support the growth of the aerospace sector in Malaysia and position the country as a leading aerospace hub in Asia.

The fund, launched at the Langkawi International Maritime and Aerospace Exhibition 2025 (Lima 2025), will be delivered through MBSB Bank and MIDF’s Development Finance facility and will be channelled to original equipment manufacturer (OEM) suppliers, Tier 1 and Tier 2 producers, maintenance, repairs and operations (MRO) service providers, and companies investing in research and development, automation and talent.

“Funds are available immediately, with streamlined approvals coordinated through MBSB’s commercial and development finance teams,” MBSB said in a statement.

MBSB is also engaging with aerospace clusters in Selangor, Joho, and Negeri Sembilan to ensure financing support is directed to high-impact areas.

“Aerospace is not just a high-sector, it’s also high-impact. As Malaysia cements its role in the global supply chain and supplies to major OEMs, the returns to our economy are tangible from skilled job creation to export value,” MBSB group chief executive officer (CEO) Rafe Haneef said.

“Our RM1 billion facility is designed to scale that impact by backing players with the ambition to lead in manufacturing, design, and innovation,” Rafe added.

National Aerospace Industry Coordination Office Malaysia CEO Shamsul Kamar Abu Samah welcomed MBSB’s RM1 billion facility and sees it as a “timely boost to the sector’s momentum”. In 2024, Malaysia’s aerospace industry generated RM25.1 billion in revenue, on the back of strong growth in MRO and manufacturing.